New York, New York (PressExposure) May 17, 2012 -- Sasha Cekerevac, editor for financial e-newsletter Penny Stock Detectives, believes that the reason why palladium has a strong future is that its use in various industries continues to grow, in addition to being a store of value. In a recent Penny Stock Detectives article, Cekerevac argues that one junior uranium miner with properties in Canada looks extremely attractive, because it has secured the financing it needs to fund its aggressive expansion plans.
"One junior mining company that is specifically involved in palladium is North American Palladium," notes Cekerevac. One of the reasons the analyst likes North American Palladium is its main properties are in Canada. "Canada is a stable country and is extremely cooperative towards junior mining companies," says Cekerevac.
In his article, Cekerevac reports that North American Palladium recently closed a deal to sell over 11 million flow-through shares at a price of $3.10 (Canadian) for total proceeds of just over $35.0 million. The company will use these funds to expand exploration and mine expansion at its property in Canada that contains palladium. According to Cekerevac, one of the issues with junior mining companies occasionally can be a lack of funds for the expansion of mines and further exploration of the properties. This deal secures the funds needed to continue forward progress, says the editor.
According to Cekerevac, when looking into junior mining companies, you should ensure their guidance is in line with what management has previously stated, as this is a sign of good execution. The analyst points out that North American Palladium issued a statement affirming previous guidance and reporting its expectations to produce between 150,000 and 160,000 ounces of palladium this year at a cost of $375.00-$400.00 an ounce, compared with the current spot price of palladium at $645.00 an ounce.
The stock has recently bounced off major support going back into the fall of 2011, according to Cekerevac. While the stock does have significant resistance at several key levels, namely $4.50 and $5.00, says Cekerevac, this recent bullish activity appears to have the possibility of continuing. The analyst suggests that the risk-averse investor might use the recent lows as a stop, while looking to the resistance above as areas for partial profits-$4.50 and $5.00. Cekerevac says he would wait for further confirmation in its exploration work before investing capital into this firm. Junior mining companies can have large, volatile swings based on results of their exploration work. However, Cekerevac says that North American Palladium is certainly on his long-term radar screen.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This...which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: [http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS].